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Funding Resources

PA Alternative Energy Portfolio Standard
Type of Incentive	Environmental Regulations
Eligible States	PA
Eligible Technology	Backpressure Turbine, Boiler, Combustion Turbine, Condensing Turbine, Extracting Turbine, Fuel Cell, Microturbine, Other, Reciprocating Engine, Heat Recovery Generator, Stirling Engine
Eligible Fuel	# 2 Fuel Oil, # 6 Fuel Oil, Biogas, Biomass, Coal, Hydrogen, LFG, Municipal Solid Waste, Natural Gas, Other, Tire-Derived Fuel, Waste heat Recovery
Eligible Project Size	All (MW)
Number of Awards
Size of Award	Pennsylvania's Alternative Energy Portfolio Standard (AEPS) was established in 2004 and amended in 2007. It requires load-serving energy companies to provide 18 percent of their electricity from alternative sources by compliance year 2020-2021. The AEPS has two categories of technologies with separate target amounts, Tier I and Tier II. Both new and existing renewables are eligible as Tier I resources. Tier II resources include demand-side management and distributed generation systems, including CHP. In 2008/2009, 2 percent of electricity sold must come from Tier I sources and 0.5 percent each year thereafter, to reach 8 percent of electricity from Tier I sources by 2020/2021. The Tier II standard increases 2 percent every five years to reach 6.2 percent in 2010/2011 and 8.2 percent in 2015/2016. An additional jump to 10 percent in Tier II resources by 2020/2021 is included as part of the standard. Tier I resources include: solar photovoltaic energy, solar thermal energy, wind, low-impact hydro, geothermal, biomass, biologically derived methane gas, coal mine methane, fuel cells, and in-state pulping process and wood manufacturing byproducts. Tier II resources include: waste coal, distributed generation (DG) systems, demand-side management, large-scale hydro, municipal solid waste, integrated combined coal gasification technology, and out-of-state pulping process and wood manufacturing byproducts. Compliance is based on renewable energy credits (RECs), and banking of excess credits is allowed for up to two years. One credit is equal to one megawatt-hour (MWh) of renewable generation. RECs are the property of the renewable energy generator. Eligible resources may originate within Pennsylvania or within the PJM regional transmission organization (RTO), however, out-of-state resources located in the MISO may be used in areas served by MISO. Amendments to the Standard became effective in November 2008.
Start Date	2/28/2005
End Date
Minimum Efficiency(%)
Additional Information	The AEPS contains a force majeure clause under which the Pennsylvania Public Utilities Commission (PUC) can make a determination as to whether there are sufficient alternative energy resources in the market for utilities to meet their targets. If the PUC determines that utilities are unable to comply with the standard despite good faith efforts, the PUC may alter the obligation for a given year. It may then require higher obligations in subsequent years to compensate for shortfalls. The law establishes an alternative compliance payment (ACP) of $45 per megawatt-hour for shortfalls in Tier I and Tier II resources. A separate ACP for solar PV is calculated as 200% times the sum of: (1) the market value of solar AECs for the reporting period and (2) the levelized value of up-front rebates received by sellers of solar AECs. Monies received through the ACP will be transferred into Pennsylvania's Sustainable Energy Funds and used solely to support alternative-energy projects.
Web Site	http://www.puc.state.pa.us/electric/electric_alt_energy.aspx
Additional Web Site	http://www.dsireusa.org/library/includes/ incentive2.cfm?Incentive_Code=PA06R&state=PA&CurrentPageID=1&RE=1&EE=1
Primary Contact	Scott Gebhardt PA Public Utility Commission P.O. Box 3265 Harrisburg, PA 17105 U.S.A. Scott Gebhardt (sgebhardt@state.pa.us) (717) 425-7584

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